Electra Battery Materials (TSXV: ELBM) last night announced it intends to conduct a significant consolidation of its common shares. The reverse split is being pursued as a result of the firms desire to acquire a listing on the Nasdaq Stock Market.
The reverse share split will see shareholders receive one post consolidation share for every 18 pre-consolidation shares held in the company. The move will see the firms outstanding share count reduced from 562.4 million to that of 31.2 million, while outstanding options, warrants, and convertible notes will also be proportionally adjusted.
The share consolidation is expected to take effect as of April 11, when it will begin trading on a post consolidation basis.
The consolidation is being conducted largely as a result of minimum pricing requirements on the US big board. The firm also attempted to settle investor concerns by stating that the higher share price is “more palatable to US institutional investors.”
Electra currently “hopes” to be trading on the Nasdaq by the end of the month. The company intends to remain listed on the TSX Venture Exchange once such a listing is achieved.
The firm subsequently this morning announced it has entered into an offtake agreement for nickel and cobalt produced at its recycling plant in Ontario. Glencore AG has agreed to purchase nickel and cobalt produced until the end of 2024 at market pricing.
Electra Battery Materials last traded at $0.33 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
